24 PROCTOR | April 2016
Why diversity
is core business
The Law Council of Australia
recognises that a diverse
profession benefits its members
and the broader community.
Last year it released its Diversity and Equality
Charter, which advocates that the Australian
legal profession and its members treat
everyone with respect in order to enhance
equality and justice.
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Inclusion is the key to achieving diversity
and it is grounded in respect.
2
While the promotion of diversity is a matter
of equity, research shows that it is good for
business. A diverse workforce:
• nurtures the talent of employees
• improves financial performance
• responds more effectively to clients’ needs
• promotes problem-solving and innovation.3
These benefits arise because a diverse
workforce will have the capacity to challenge
pre-existing thinking via myriad identities and
cultural perspectives. Diversity might flow from
any number of qualities, including gender, race,
disability, age or sexual preference. Diversity
thrives in a workplace in which employees feel
they are appreciated for being themselves. It is
a move away from an expectation that people
should ‘fit in’. Inclusion means that people are
valued for the talent and perspectives they
bring to an organisation.
The Law Council is encouraging legal
organisations to adopt the charter and
gives them the opportunity to be listed
on the council’s website. As of last month,
there were more than 50 adopters with
their corporate logos displayed, including
Queensland Law Society.
Positive outcomes for respect and inclusion
A range of strategies are being used by law
firms to promote diversity. One starting point
is to conduct a review of practices around
recruitment, retention and promotion.
4
Data collection about a firm’s diversity
and culture can reveal where attention is
needed. Regular monitoring, together with
targets, keeps attention focused on under-
representation. It accords with the adage,
‘what gets measured gets done’.
5
Commitment from leadership is essential to
achieve change.6 Leaders have the capacity to
shift the push for diversity to a core business
initiative. In the past, diversity initiatives have
been separate from core business and not
regarded as an organisational strategy. This
has changed with organisations such as
McKinsey and Company, Google, Facebook
and locally based Aurizon championing
diversity as a key strategic goal.
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Herbert Smith Freehills has been promoting
diversity for many years. Danielle Kelly, its head
of diversity and inclusion, Australia and Asia,
says she has seen a shift towards diversity and
inclusion being viewed as key to engagement
and performance, and a core enabler of the
firm achieving its strategic objectives.
The firm’s diversity and inclusion strategy
is driven by the Global Diversity & Inclusion
Group, which is chaired by the CEO. At a
regional level, the Australian executive drives
the diversity agenda and each member has
at least one diversity KPI against which he
or she is measured.
Ms Kelly emphasised that harnessing the
benefits of diversity requires developing an
organisational culture which is inclusive and
respectful. Psychological safety is paramount
if people are able to bring their whole selves
to work and to feel empowered to offer
different perspectives to increasingly complex
issues. She said that this was key to fostering
an environment in which innovation and
creativity could thrive.
Countering existing bias is key to improving
diversity. The president of the American
Bar Association, Pauline Brown, identifies
“awareness, close relationships and
experience with different people” as the path
to countering unconscious bias.8 Mahzarin,
Banaji, Bazerman and Chugh identify three
types of unconscious bias:
“• Implicit Prejudice (judging according
to unconscious stereotypes rather
than merit).
• In-Group Favouritism (granting favours
to people with the same background
(e.g. nationality, alma mater)).
• Overclaiming Credit (managers failing to
ensure that all members of a team feel
their contribution has been acknowledged,
rather than only one or a few members).”
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Danielle Kelly says Herbert Smith Freehills is
committed to creating institutional safeguards
to counteract the effects of unconscious bias in
decision-making. It is the first key commitment
in the firm’s Global Diversity and Inclusion Policy.
Partners and senior business leaders
receive inclusive leadership training in which
unconscious bias awareness is explored as
a significant impediment to good decision-
making (particularly around talent and
promotion). Participants discuss techniques
to counteract unconscious bias and are then
actively encouraged to use these techniques
at significant decision points (such as
discussions regarding remuneration or talent).
Danielle says staff are encouraged to
consider how they use language. Care is
taken to avoid descriptions of candidates
for recruitment or promotion being framed
according to stereotypes. Also, the firm
nominates someone to be on alert for
homophily – the tendency to favour or
connect with those people similar to oneself.
Co-CEO Mark Rigotti says: “Once systems
are put in place to counteract the impact of
bias, particularly at an organisational level,
the quality of decision-making processes
improve, which, in turn, can positively
affect business performance.”
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The profession is recognising the benefits
of making diversity core business. Law
Council president elect Fiona McLeod
SC says that the council will develop an
unconscious bias training package that
will be available to the profession.
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